Long-term market implications of data breaches, not

ABSTRACT

This report assesses the impact disclosure of data breaches has on the total returns and volatility of the affected companies’ stock, with a focus on the results relative to the performance of the firms’ peer industries, as represented through selected indices rather than the market as a whole. financial performance is considered over a range of dates from 3 days post-breach through 6 months post-breach, in order to provide a longer-term perspective on the impact of the breach announcement.

Acknowledgments

The authors would like to thank the reviewers for their remarks and comments on an earlier draft of this article.

Declaration of interest

The authors report no conflicts of interest. The authors alone are responsible for the content and writing of the article.

Funding

This material is based upon work supported by the National Science Foundation under Grant No. 1362046 and the industry affiliates of the Security and Software Engineering Research Center (S²ERC). The views and analysis provided are entirely our own and not attributable to any other party.